New Tempe businesses give hope to Mill Avenue District's future

A weather report might describe the business forecast for downtown Tempe as partly cloudy with clear skies on the horizon.

Between the lingering effects of the recession and competition from Tempe Marketplace, the Mill Avenue District has dealt with stormy economic conditions for several years.

While some longtime business owners are still struggling, they are hopeful that a flurry of new businesses might draw more people to the downtown area and finally lift it out of its slump.

But they worry that until the area gets a better mix of retail to complement the bars and restaurants, the area will struggle to reach its potential.

New businesses to recently open include Rita's, an Italian ice and frozen desserts shop; the Beach Pit, a Texas barbecue-and-beer joint; Bad Mother Cluckers, a restaurant specializing in chicken; and Desert Roots Kitchen, a vegan restaurant.

World of Beer, which specializes in serving craft and import brews, is one of the most high-profile businesses to open on Mill. It is the beer haven's first location west of Texas.

Business has been hopping, said manager J. P. Watts, with people looking to try one of the bar's 500-plus bottled beers or 58 beers rotating on tap.

Watts said the draw is the "variety (of beers and) giving people a chance to try things they can't get anywhere else."

Downtown Tempe business leader Nancy Hormann said the Mill Avenue District's model for success is having one-of-a kind businesses that attract people from across the Valley.

Jayne Ortiz, 32, and Shaun Howard, 27, live in east Phoenix but after a meal Thursday at RA Sushi Bar Restaurant they wanted to check out the new beer hotspot.

They said they liked the atmosphere and the beer selection, but they still prefer Westgate City Center in Glendale to Mill Avenue for entertainment because the crowd is more diverse in age and race.

The friends said they typically avoid Mill because there are "too many college kids," but that they would visit more often if downtown had a good dance club. Preferably salsa dancing, Ortiz said.

Longtime downtown Tempe business owners have argued that the mix of businesses on Mill is too dependent on bars and restaurants.

Gil Schmitt has owned three downtown Tempe businesses, including Sparky's Old Town Creamery, an ice-cream shop, and Thirsty Dog 2 Go, a convenience store. Before that he owned Arizona Shorts for 26 years.

Schmitt said he is hopeful the new businesses will survive where others have failed.

"It's really hard for the mom-and-pop shops to make it in this tough economy," he said, adding that many of the new businesses are franchises or backed by investors with deep pockets.

Schmitt pointed to Devil's Den, an Arizona State University-themed restaurant and bar that closed shortly after it opened. A Firehouse Bar and Grill is expected to open in its place soon.

Schmitt said he feels terrible for the independent entrepreneurs, like the owners of Devil's Den, who invested heavily in a business but could not make it on Mill.

Schmitt believes a few changes would make it easier for businesses to thrive downtown. But those changes would be hard to enforce, he said.

He would like to see landowners charge more affordable rates. Schmitt said his lease rates are atypically affordable, and without those rates it would be tough for him to survive.

He would also like to see more thoughtful planning, which encourages a better mix of retail, entertainment, bars and service businesses, as well as prevents too many of the same type of businesses from opening in the relatively small Mill Avenue District.

Although it may be as difficult to predict Mill Avenue's future as it is to predict the weather, the area is still one of the favored spots in the Valley to open a business.

Watts said World of Beer had no doubts about the success they would see on Mill.

"There's 70,000 college students, not to mention it's a great area," he said. "There was a great spot available on Mill -- we came here -- it's a no-brainer."